S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2711
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 22, 2025
                                ___________
 
 Introduced  by  M.  of  A.  WOERNER,  CLARK,  ROSENTHAL -- read once and
   referred to the Committee on Tourism, Parks, Arts and Sports  Develop-
   ment
 
 AN  ACT to amend the parks, recreation and historic preservation law and
   the tax law, in relation to establishing the historic preservation tax
   credit transfer program

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  parks,  recreation  and historic preservation law is
 amended by adding a new article 14-A to read as follows:
                               ARTICLE 14-A
             HISTORIC PRESERVATION TAX CREDIT TRANSFER PROGRAM
 SECTION 14.15 SHORT TITLE.
         14.16 STATEMENT OF LEGISLATIVE FINDINGS AND DECLARATION.
         14.17 DEFINITIONS.
         14.18 ELIGIBILITY CRITERIA.
         14.19 ALLOWANCE OF CREDIT, AMOUNT AND LIMITATIONS.
         14.20 HISTORIC PRESERVATION TAX CREDIT TRANSFER.
         14.21 POWERS AND DUTIES OF THE COMMISSIONER.
   § 14.15 SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE  CITED  AS
 THE "HISTORIC PRESERVATION TAX CREDIT TRANSFER PROGRAM".
   § 14.16 STATEMENT OF LEGISLATIVE FINDINGS AND DECLARATION. IT IS HERE-
 BY  FOUND  AND DECLARED THAT NEW YORK STATE NEEDS, AS A MATTER OF PUBLIC
 POLICY, TO PROVIDE FLEXIBILITY AND INCENTIVES FOR BUSINESSES WHICH REHA-
 BILITATE HISTORIC PROPERTIES  TO  FURTHER  PROMOTE  THE  DEVELOPMENT  OF
 AFFORDABLE HOUSING.
   § 14.17 DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
   1.  "CERTIFICATE  OF  HISTORIC PRESERVATION TAX CREDIT TRANSFER" MEANS
 THE DOCUMENT ISSUED BY THE DEPARTMENT  TO  AN  ELIGIBLE  TRANSFEREE  AND
 ELIGIBLE  TRANSFEROR,  AS APPROPRIATE. THE CERTIFICATE SHALL SPECIFY THE
 EXACT AMOUNT OF THE TAX CREDIT  UNDER  THIS  ARTICLE  THAT  AN  ELIGIBLE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05714-02-5
              

 A. 2711                             2
 
 TRANSFEREE  MAY  CLAIM  AND  THE  PERCENTAGE OF THE TOTAL CREDIT THAT AN
 ELIGIBLE TRANSFEROR HAS FORFEITED PURSUANT TO THIS ARTICLE.
   2.  "COMMISSIONER"  SHALL  MEAN  COMMISSIONER OF PARKS, RECREATION AND
 HISTORIC PRESERVATION.
   3. "DEPARTMENT" SHALL MEAN THE DEPARTMENT  OF  PARKS,  RECREATION  AND
 HISTORIC PRESERVATION.
   4.  "ELIGIBLE  PROJECT"  SHALL  MEAN  A PROJECT ALLOWED REHABILITATION
 CREDIT AND LOW-INCOME HOUSING TAX CREDIT, AS DETERMINED BY  THE  DEPART-
 MENT  AND  DIVISION  OF COMMUNITY HOUSING AND RENEWAL, RESPECTIVELY, AND
 FOR WHICH AN ELIGIBLE TRANSFEROR MAY TRANSFER A REHABILITATION CREDIT.
   5. "ELIGIBLE TRANSFEREE" SHALL MEAN A TAXPAYER WHICH MEETS THE  ELIGI-
 BILITY CRITERIA SET FORTH IN SECTION 14.18 OF THIS ARTICLE. A NON-PROFIT
 INTERMEDIARY  MAY  ALSO  BE  AN ELIGIBLE TRANSFEREE FOR PURPOSES OF THIS
 ARTICLE.
   6. "ELIGIBLE TRANSFEROR" SHALL MEAN THE TAXPAYER SUBJECT TO TAX  UNDER
 ARTICLE  NINE-A,  TWENTY-TWO,  OR  THIRTY-THREE  OF THE TAX LAW WHICH IS
 ALLOWED A REHABILITATION CREDIT IN  ACCORDANCE  WITH  THIS  CHAPTER  AND
 MEETS  THE ELIGIBILITY CRITERIA SET FORTH IN SECTION 14.18 OF THIS ARTI-
 CLE. A NON-PROFIT INTERMEDIARY MAY ALSO BE AN  ELIGIBLE  TRANSFEROR  FOR
 PURPOSES OF THIS ARTICLE.
   7.  "FEDERAL  REHABILITATION CREDIT" MEANS THE FEDERAL TAX CREDIT THAT
 MAY BE ALLOCATED WITH RESPECT TO A CERTIFIED  HISTORIC  STRUCTURE  UNDER
 SECTION FORTY-SEVEN OF THE INTERNAL REVENUE CODE.
   8.  "HISTORIC  PRESERVATION TAX CREDIT TRANSFER" SHALL MEAN A TRANSFER
 OF THE REHABILITATION CREDIT ALLOWED FOR A CERTIFIED HISTORIC  REHABILI-
 TATION PROJECT.
   9. "NON-PROFIT INTERMEDIARY" MEANS A NON-PROFIT ENTITY THAT RECEIVES A
 TRANSFER  OF  A  REHABILITATION  CREDIT  FROM  AN ELIGIBLE TRANSFEROR TO
 FACILITATE THE TRANSFER OF SUCH CREDIT TO AN ELIGIBLE TRANSFEREE.
   10. "QUALIFIED REHABILITATION EXPENDITURES" SHALL HAVE THE SAME  MEAN-
 ING AS IN SECTION FORTY-SEVEN OF THE INTERNAL REVENUE CODE.
   11.  "REHABILITATION  CREDIT"  OR  "HISTORIC  PRESERVATION TAX CREDIT"
 SHALL MEAN THE CREDIT  PROVIDED  FOR  UNDER  SUBDIVISION  TWENTY-SIX  OF
 SECTION TWO HUNDRED TEN-B, SUBSECTION (OO) OF SECTION SIX HUNDRED SIX OR
 SUBDIVISION (Y) OF SECTION FIFTEEN HUNDRED ELEVEN OF THE TAX LAW.
   12.  "TAXPAYER"  MEANS A PERSON OR ENTITY SUBJECT TO TAX IMPOSED UNDER
 ARTICLE NINE-A, TWENTY-TWO OR THIRTY-THREE OF THE TAX LAW, INCLUDING  AS
 A  PARTNER  IN  A  PARTNERSHIP, MEMBER OF A LIMITED LIABILITY COMPANY OR
 SHAREHOLDER IN A SUBCHAPTER S CORPORATION.
   13. REFERENCES IN THIS ARTICLE TO SECTION FORTY-SEVEN OF THE  INTERNAL
 REVENUE CODE SHALL MEAN SUCH SECTION AS AMENDED FROM TIME TO TIME.
   § 14.18 ELIGIBILITY  CRITERIA. 1. TO BE ELIGIBLE TO MAKE A TRANSFER OF
 A REHABILITATION CREDIT UNDER THIS SECTION, A TRANSFEROR SHALL:
   (A) (I) BE THE TAXPAYER TO WHICH THE REHABILITATION CREDIT IS ALLOWED;
   (II) HAVE RECEIVED CERTIFICATION OF SUCH AWARD FROM  THE  COMMISSIONER
 FOR AN ELIGIBLE PROJECT;
   (III)  IDENTIFY  THE  AMOUNT OF THE REHABILITATION CREDIT ALLOWED THAT
 MAY OTHERWISE BE CLAIMED FOR THE TAXABLE YEAR;
   (IV) NOT FILE OR HAVE FILED THE CERTIFICATED REHABILITATION CREDIT  AS
 PART  OF SUCH BUSINESS ENTITY'S OWN TAX RETURN OR INFORMATION RETURN FOR
 ANY TAX YEAR; AND
   (V) NOT TRANSFER A CERTIFICATED REHABILITATION CREDIT FOR AN  ELIGIBLE
 PROJECT  IF  SUCH CREDIT WAS RECEIVED THROUGH A TRANSFER CONTRACT FROM A
 TRANSFEROR OTHER THAN A NON-PROFIT INTERMEDIARY; OR
   (B) BE A NON-PROFIT INTERMEDIARY WHICH HAS RECEIVED THE REHABILITATION
 CREDIT PURSUANT TO A TRANSFER IN ACCORDANCE WITH THIS ARTICLE.
 A. 2711                             3
 
   2. TO BE ELIGIBLE TO ACCEPT A TRANSFER OF A REHABILITATION CREDIT  FOR
 AN ELIGIBLE PROJECT UNDER THIS SECTION, A TRANSFEREE MUST BE A TAXPAYER,
 PROVIDED  THAT  A  NON-PROFIT ENTITY ACTING AS A NON-PROFIT INTERMEDIARY
 MAY ALSO ACCEPT SUCH A TRANSFER. SUCH TAXPAYER  OR  NON-PROFIT  INTERME-
 DIARY  NEED  NOT OWN AN INTEREST IN THE ELIGIBLE PROJECT OR IN AN ENTITY
 WITH AN OWNERSHIP INTEREST IN THE ELIGIBLE PROJECT  TO  BE  ELIGIBLE  TO
 ACCEPT SUCH A TRANSFER.
   3.  (A) AN ELIGIBLE TRANSFEROR MAY TRANSFER THE REHABILITATION CREDIT,
 IN WHOLE OR IN PART, TO AN ELIGIBLE TRANSFEREE WITH THE SAME  EFFECT  AS
 IF  SUCH  ELIGIBLE  TRANSFEREE HAD INCURRED THE QUALIFIED REHABILITATION
 EXPENDITURES, PROVIDED THAT NO PARTIAL TRANSFER MAY  BE  FOR  LESS  THAN
 TWENTY-FIVE PERCENT OF THE FULL REHABILITATION CREDIT THAT MAY OTHERWISE
 BE CLAIMED BY THE TRANSFEROR.
   (B)  AN ELIGIBLE TRANSFEROR MAY (I) TRANSFER THE REHABILITATION CREDIT
 ALLOWED FOR AN ELIGIBLE PROJECT TO AN ELIGIBLE TRANSFEREE TOGETHER  WITH
 A  FEDERAL  REHABILITATION CREDIT ALLOWED FOR THE SAME ELIGIBLE PROJECT,
 (II) TRANSFER SUCH REHABILITATION CREDIT, IN WHOLE OR IN PART, TO ONE OR
 MORE ELIGIBLE TRANSFEREES AND THE FEDERAL REHABILITATION CREDIT FOR  THE
 SAME ELIGIBLE PROJECT TO A DIFFERENT ELIGIBLE TRANSFEREE OR TRANSFEREES,
 (III)  RETAIN  THE  REHABILITATION  CREDIT  EVEN  WHILE TRANSFERRING THE
 FEDERAL REHABILITATION CREDIT ALLOWED FOR THE SAME ELIGIBLE  PROJECT  TO
 AN ELIGIBLE TRANSFEREE OR (IV) RETAIN OR TRANSFER A REHABILITATION CRED-
 IT  FOR  AN  ELIGIBLE PROJECT FOR WHICH NO FEDERAL REHABILITATION CREDIT
 HAS BEEN ALLOWED.
   4. (A) AN ELIGIBLE TRANSFEREE WHICH HAS ACCEPTED  A  TRANSFER  OF  ANY
 REHABILITATION  CREDIT,  IN  WHOLE  OR IN PART, SHALL USE OR REPORT SUCH
 CREDIT IN THE TAXABLE YEAR FOR WHICH IT IS ALLOWED AND MAY NOT  TRANSFER
 ANY  CREDIT, OR PORTION THEREOF, ACQUIRED BY A TRANSFER PURSUANT TO THIS
 ARTICLE, PROVIDED THAT IF  SUCH  ELIGIBLE  TRANSFEREE  IS  A  NON-PROFIT
 INTERMEDIARY,  SUCH  INTERMEDIARY MAY TRANSFER THE CREDIT TO AN ELIGIBLE
 TRANSFEREE PURSUANT TO THIS ARTICLE.
   (B) AN ELIGIBLE TRANSFEREE NEED NOT AGREE TO ACCEPT A TRANSFER OF BOTH
 THE ELIGIBLE TRANSFEROR'S REHABILITATION CREDIT  AND  FEDERAL  REHABILI-
 TATION CREDIT FOR THE SAME ELIGIBLE PROJECT.
   § 14.19 ALLOWANCE  OF  CREDIT,  AMOUNT AND LIMITATIONS. 1. AN ELIGIBLE
 TRANSFEROR, OR AN ELIGIBLE TRANSFEREE WHICH HAS ENTERED INTO A  TRANSFER
 CONTRACT  WITH  SUCH ELIGIBLE TRANSFEROR AS DESCRIBED IN SUBDIVISION TWO
 OF THIS SECTION, SHALL BE ALLOWED A CREDIT AGAINST TAX FOR THE AMOUNT OF
 REHABILITATION CREDIT CERTIFIED BY  THE  COMMISSIONER  FOR  AN  ELIGIBLE
 PROJECT.
   2.(A) AN ELIGIBLE TRANSFEREE ALLOWED A CREDIT PURSUANT TO THIS ARTICLE
 MUST  ENTER  INTO A TRANSFER CONTRACT WITH THE ELIGIBLE TRANSFEROR.  THE
 TRANSFER CONTRACT MUST SPECIFY:
   (I) THE BUILDING IDENTIFICATION  NUMBERS  FOR  ALL  BUILDINGS  IN  THE
 ELIGIBLE PROJECT;
   (II) THE DATE EACH BUILDING WAS PLACED INTO SERVICE;
   (III) THE FIVE-YEAR OWNERSHIP PERIOD FOR THE PROJECT;
   (IV)  THE  SCHEDULE  OF  YEARS  FOR  WHICH  THE TRANSFER CREDIT MAY BE
 CLAIMED AND THE AMOUNT OF CREDIT PREVIOUSLY CLAIMED;
   (V) THE AMOUNT OF CONSIDERATION RECEIVED BY  THE  ELIGIBLE  TRANSFEROR
 FOR THE TRANSFER CREDIT; AND
   (VI) THE AMOUNT OF CREDIT BEING TRANSFERRED.
   (B)  THE  COMMISSIONER  SHALL ESTABLISH PROCEDURES AND A TIMEFRAME FOR
 THE SUBMISSION OF AN HISTORIC PRESERVATION TAX  CREDIT  TRANSFER  STATE-
 MENT. NO TRANSFER SHALL BE EFFECTIVE UNLESS THE TAXPAYER ALLOWED A CRED-
 IT  PURSUANT TO THIS ARTICLE AND SEEKING TO TRANSFER THE CREDIT FILES AN
 A. 2711                             4
 
 HISTORIC PRESERVATION TAX CREDIT TRANSFER STATEMENT WITH THE COMMISSION-
 ER PRIOR TO THE TRANSFER AND THE COMMISSIONER  APPROVES  SUCH  TRANSFER.
 THE  HISTORIC  PRESERVATION  TAX CREDIT TRANSFER STATEMENT SHALL PROVIDE
 THE  NAME  AND  FEDERAL  IDENTIFICATION  NUMBERS  OF THE FILING ELIGIBLE
 TRANSFEROR AND THE ELIGIBLE TRANSFEREE TO  WHOM  THE  FILING  TRANSFEROR
 TRANSFERRED  THE  CREDIT,  IN WHOLE OR IN PART, AND THE AMOUNT OF CREDIT
 TRANSFERRED TO SUCH ELIGIBLE TRANSFEREE. A COPY OF THE PROPOSED TRANSFER
 CONTRACT SHALL BE ATTACHED  TO  THE  HISTORIC  PRESERVATION  TAX  CREDIT
 TRANSFER STATEMENT. THE STATEMENT SHALL ALSO CONTAIN SUCH OTHER INFORMA-
 TION  AS  THE  COMMISSIONER  MAY  REQUIRE.  AFTER REVIEWING THE PROPOSED
 TRANSFER CONTRACT AND THE TRANSFER  STATEMENT,  THE  COMMISSIONER  SHALL
 APPROVE  OR  DENY  THE  TRANSFER AS PROVIDED IN THIS SUBDIVISION. IF THE
 COMMISSIONER APPROVES THE  TRANSFER,  THE  COMMISSIONER  SHALL  ISSUE  A
 CERTIFICATE  OF  HISTORIC PRESERVATION TAX CREDIT TRANSFER THAT PROVIDES
 THE NAME OF THE ELIGIBLE TRANSFEROR AND ELIGIBLE TRANSFEREE, THE  AMOUNT
 OF  CREDIT  BEING  TRANSFERRED AND SUCH OTHER INFORMATION AS THE COMMIS-
 SIONER AND THE COMMISSIONER OF TAXATION AND FINANCE  DEEM  NECESSARY.  A
 COPY  OF  THE  COMMISSIONER'S  CERTIFICATE  OF HISTORIC PRESERVATION TAX
 CREDIT TRANSFER MUST BE ATTACHED TO THE TRANSFEREE'S TAX RETURN FOR  THE
 TAXABLE  YEAR FOR WHICH THE CREDIT IS BEING CLAIMED. IF THE COMMISSIONER
 DENIES  THE  TRANSFER,  THE  COMMISSIONER  SHALL  PROVIDE  THE  ELIGIBLE
 TRANSFEROR A WRITTEN DETERMINATION FOR SUCH DENIAL. THE COMMISSIONER, IN
 CONSULTATION  WITH  THE COMMISSIONER OF TAXATION AND FINANCE, MAY ESTAB-
 LISH SUCH ADDITIONAL PROCEDURES AND STANDARDS AS  DEEMED  NECESSARY  FOR
 THE TRANSFERABILITY OF THE REHABILITATION CREDIT.
   (C)  THE  COMMISSIONER  SHALL  MAINTAIN  AN  AUDITABLE RECORD OF VALID
 CERTIFICATES OF HISTORIC PRESERVATION TAX CREDIT TRANSFER TO BE PROVIDED
 TO THE DEPARTMENT OF TAX AND FINANCE AT LEAST ANNUALLY OR  UPON  REQUEST
 MORE  FREQUENTLY  IF  DEEMED NECESSARY BY THE DEPARTMENT OF TAXATION AND
 FINANCE.
   § 14.20 HISTORIC PRESERVATION TAX  CREDIT  TRANSFER.  1.  AN  ELIGIBLE
 TRANSFEREE  SHALL BE ENTITLED TO APPLY TRANSFERRED REHABILITATION CREDIT
 TO A TAX IMPOSED UNDER ARTICLE NINE-A, TWENTY-TWO OR THIRTY-THREE OF THE
 TAX LAW, PROVIDED ALL REQUIREMENTS FOR CLAIMING SUCH CREDIT ARE MET.
   2. THE TRANSFER OF CREDIT SHALL BE  ALLOWED  AS  PROVIDED  IN  SECTION
 FIFTY OF THE TAX LAW.
   § 14.21 POWERS AND DUTIES OF THE COMMISSIONER. 1. THE COMMISSIONER, IN
 CONSULTATION  WITH THE DEPARTMENT OF TAXATION AND FINANCE, SHALL PROMUL-
 GATE REGULATIONS ESTABLISHING ELIGIBILITY CRITERIA  AND  A  PROCESS  FOR
 SUBMITTING AN HISTORIC PRESERVATION TAX CREDIT TRANSFER STATEMENT WHICH,
 NOTWITHSTANDING  ANY PROVISIONS TO THE CONTRARY IN THE STATE ADMINISTRA-
 TIVE PROCEDURE ACT, MAY BE ADOPTED ON AN EMERGENCY BASIS.
   2. THE COMMISSIONER SHALL, IN  CONSULTATION  WITH  THE  DEPARTMENT  OF
 TAXATION AND FINANCE, DEVELOP A CERTIFICATE OF HISTORIC PRESERVATION TAX
 CREDIT  TRANSFER  THAT  SHALL  BE ISSUED BY THE COMMISSIONER TO ELIGIBLE
 BUSINESS ENTITIES. SUCH CERTIFICATE SHALL CONTAIN  SUCH  INFORMATION  AS
 REQUIRED BY THE DEPARTMENT OF TAXATION AND FINANCE.
   §  2. Section 14.05 of the parks, recreation and historic preservation
 law is amended by adding a new subdivision 5 to read as follows:
   5. THE COMMISSIONER SHALL REPORT ANNUALLY, ON OR BEFORE THE FIRST  DAY
 OF  NOVEMBER,  ON THE TAX CREDIT PROJECTS APPLIED FOR IN ACCORDANCE WITH
 SUBDIVISION TWENTY-SIX OF SECTION TWO HUNDRED TEN-B, SUBSECTION (OO)  OF
 SECTION  SIX HUNDRED SIX, AND SUBDIVISION (Y) OF SECTION FIFTEEN HUNDRED
 ELEVEN OF THE TAX LAW ON RETURNS FILED  DURING  THE  PRECEDING  CALENDAR
 YEAR. SUCH REPORT SHALL BE PROVIDED TO THE GOVERNOR, TEMPORARY PRESIDENT
 OF  THE SENATE, SPEAKER OF THE ASSEMBLY, CHAIRS OF THE SENATE COMMITTEES
 A. 2711                             5

 ON FINANCE AND ON HOUSING, CONSTRUCTION AND COMMUNITY  DEVELOPMENT,  AND
 CHAIRS  OF  THE  ASSEMBLY  COMMITTEES  ON WAYS AND MEANS AND ON HOUSING,
 SHALL BE MADE PUBLICLY AVAILABLE ON THE DEPARTMENT'S WEBSITE  AND  SHALL
 INCLUDE THE FOLLOWING INFORMATION:
   (A) THE NUMBER AND VALUE OF TAX CREDIT PROJECTS APPLIED FOR DURING THE
 STATE  FISCAL  YEAR,  ORGANIZED  BY MUNICIPALITY AND COUNTY, AND PROJECT
 SIZE;
   (B) THE NUMBER AND VALUE OF  TAX  CREDIT  PROJECTS  CERTIFIED  BY  THE
 NATIONAL PARK SERVICE DURING THE STATE FISCAL YEAR, ORGANIZED BY MUNICI-
 PALITY AND COUNTY, AND PROJECT SIZE;
   (C)  THE  TOTAL  VALUE  OF  CREDITS CERTIFIED ANNUALLY FOR EACH OF THE
 TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVEN TO
 THE PRESENT, BY MUNICIPALITY AND COUNTY;
   (D) THE TOTAL VALUE OF TAX CREDIT TRANSFER CERTIFICATES ISSUED ANNUAL-
 LY FOR EACH OF THE TAXABLE YEARS BEGINNING ON OR  AFTER  JANUARY  FIRST,
 TWO THOUSAND SEVEN TO THE PRESENT, BY MUNICIPALITY AND COUNTY;
   (E) THE NUMBER OF HOUSING UNITS BEFORE AND AFTER REHABILITATION;
   (F) THE NUMBER OF LOW-MODERATE HOUSING UNITS BEFORE AND AFTER REHABIL-
 ITATION; AND
   (G)  THE NUMBER OF PROJECTS CERTIFIED FOR BOTH FEDERAL AND STATE CRED-
 ITS, AND THE NUMBER OF PROJECTS CERTIFIED FOR FEDERAL CREDITS ONLY.
   § 3. The tax law is amended by adding a new  section  50  to  read  as
 follows:
   §  50.  HISTORIC  PRESERVATION  TAX  CREDIT TRANSFER. (A) ALLOWANCE OF
 CREDIT TRANSFER. A TAXPAYER SUBJECT TO TAX UNDER ARTICLE  NINE-A,  TWEN-
 TY-TWO OR THIRTY-THREE OF THIS CHAPTER SHALL BE ALLOWED A CREDIT AGAINST
 SUCH  TAX,  PURSUANT  TO THE PROVISIONS REFERENCED IN SUBDIVISION (E) OF
 THIS SECTION. THE AMOUNT OF THE CREDIT IS EQUAL TO THE AMOUNT DETERMINED
 PURSUANT TO ARTICLE FOURTEEN-A OF THE  PARKS,  RECREATION  AND  HISTORIC
 PRESERVATION  LAW. A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP, MEMBER
 OF A LIMITED LIABILITY COMPANY OR SHAREHOLDER IN A SUBCHAPTER  S  CORPO-
 RATION SHALL BE ALLOWED ITS PRO-RATA SHARE OF THE CREDIT ALLOWED FOR THE
 PARTNERSHIP,  LIMITED  LIABILITY COMPANY OR SUBCHAPTER S CORPORATION. NO
 COST OR EXPENSE PAID OR INCURRED THAT IS INCLUDED AS PART OF THE  CALCU-
 LATION OF THIS CREDIT SHALL BE THE BASIS OF ANY OTHER TAX CREDIT ALLOWED
 UNDER THIS CHAPTER.
   (B) ELIGIBILITY. TO BE ELIGIBLE TO CLAIM THE HISTORIC PRESERVATION TAX
 CREDIT THROUGH A TRANSFER CONTRACT THE TAXPAYER SHALL HAVE BEEN ISSUED A
 CERTIFICATE  OF HISTORIC PRESERVATION TAX CREDIT TRANSFER BY THE DEPART-
 MENT OF PARKS, RECREATION AND HISTORIC PRESERVATION PURSUANT TO  ARTICLE
 FOURTEEN-A OF THE PARKS, RECREATION AND HISTORIC PRESERVATION LAW, WHICH
 CERTIFICATE SHALL SET FORTH THE AMOUNT OF THE CREDIT THAT MAY BE CLAIMED
 FOR  THE  TAXABLE  YEAR. THE TAXPAYER SHALL BE ALLOWED TO CLAIM ONLY THE
 AMOUNT LISTED ON THE CERTIFICATE OF TAX CREDIT TRANSFER FOR THAT TAXABLE
 YEAR.
   (C) TAX RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED  TO  ATTACH
 TO  ITS TAX RETURN, IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF OF
 RECEIPT OF ITS CERTIFICATE OF HISTORIC PRESERVATION TAX CREDIT  TRANSFER
 ISSUED  BY  THE  COMMISSIONER OF THE DEPARTMENT OF PARKS, RECREATION AND
 HISTORIC PRESERVATION.
   (D) CREDIT RECAPTURE. (1) IF A CERTIFICATE  OF  HISTORIC  PRESERVATION
 TAX  CREDIT  TRANSFER  ISSUED BY THE DEPARTMENT OF PARKS, RECREATION AND
 HISTORIC PRESERVATION UNDER ARTICLE FOURTEEN-A OF THE PARKS,  RECREATION
 AND  HISTORIC PRESERVATION LAW IS REVOKED BY SUCH DEPARTMENT, THE AMOUNT
 OF CREDIT DESCRIBED IN THIS SECTION AND CLAIMED BY THE TAXPAYER PRIOR TO
 A. 2711                             6

 THAT REVOCATION SHALL BE ADDED BACK TO THE TAX IN THE  TAXABLE  YEAR  IN
 WHICH ANY SUCH REVOCATION BECOMES FINAL.
   (2)  THE  TAXPAYER  THAT  ORIGINALLY  RECEIVED THE CREDIT SHALL REMAIN
 SOLELY LIABLE FOR ALL OBLIGATIONS AND LIABILITIES IMPOSED ON THE TAXPAY-
 ER WITH RESPECT TO THE CREDIT, NONE OF WHICH SHALL APPLY TO A  PARTY  TO
 WHOM THE CREDIT HAS BEEN SUBSEQUENTLY TRANSFERRED.
   (E)  CROSS  REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED IN THIS
 SECTION SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 26.
   (2) ARTICLE 22: SECTION 606, SUBSECTION (OO).
   (3) ARTICLE 33: SECTION 1511, SUBSECTION (Y).
   § 4. Paragraph (e) of subdivision 26 of section 210-B of the tax  law,
 as  amended by section 1 of part U of chapter 59 of the laws of 2019, is
 amended and two new paragraphs (g) and (h) are added to read as follows:
   (e) Except in the case of a qualified rehabilitation project undertak-
 en within a state park, state historic site, or other land owned by  the
 state, that is under the jurisdiction of the office of parks, recreation
 and  historic  preservation,  OR  IN  THE CASE OF A QUALIFIED LOW-INCOME
 HOUSING PROJECT UNDER ARTICLE TWO-A  OF  THE  PUBLIC  HOUSING  LAW  THAT
 OTHERWISE  QUALIFIES FOR A REHABILITATION CREDIT PURSUANT TO THIS SUBDI-
 VISION, to be eligible for the credit allowable under this  subdivision,
 the rehabilitation project shall be in whole or in part located within a
 census  tract  which  is  identified  as  being  at or below one hundred
 percent of the state median family income  as  calculated  as  of  April
 first  of  each  year  using the most recent five year estimate from the
 American community survey published by the United States Census  bureau.
 If  there  is  a  change in the most recent five year estimate, a census
 tract that qualified for eligibility under this program before  informa-
 tion  about  the  change  was released will remain eligible for a credit
 under this subdivision for an additional two calendar years.
   (G) (I) THE CREDIT ESTABLISHED BY THIS SUBDIVISION MAY BE  TRANSFERRED
 AS SET FORTH IN ARTICLE FOURTEEN-A OF THE PARKS, RECREATION AND HISTORIC
 PRESERVATION  LAW  WITHOUT  REGARD  TO AND IN A SEPARATE MANNER FROM ANY
 FEDERAL REHABILITATION CREDIT THAT MAY BE TRANSFERRED WITH RESPECT TO  A
 CERTIFIED  HISTORIC  STRUCTURE UNDER SECTION FORTY-SEVEN OF THE INTERNAL
 REVENUE CODE.
   (II) WITH RESPECT TO AN ELIGIBLE PROJECT THAT IS SUBJECT  TO  A  LEASE
 ARRANGEMENT  WHEREBY A LANDLORD TAXPAYER AND TENANT TAXPAYER EACH OWN AN
 INTEREST IN THE ELIGIBLE PROJECT OR  IN  AN  ENTITY  WITH  AN  OWNERSHIP
 INTEREST  IN  THE  ELIGIBLE  PROJECT AND THE LANDLORD TAXPAYER ELECTS TO
 PASS THE FEDERAL REHABILITATION CREDIT THROUGH TO SUCH TENANT  TAXPAYER,
 THE LANDLORD TAXPAYER MAY OPT TO RETAIN THE REHABILITATION CREDIT OR MAY
 PASS DOWN THE REHABILITATION CREDIT TO THE TENANT TAXPAYER WHICH MAY, IN
 TURN,  TRANSFER  SUCH REHABILITATION CREDIT TO AN ELIGIBLE TRANSFEREE AS
 SET FORTH IN ARTICLE FOURTEEN-A OF THE PARKS,  RECREATION  AND  HISTORIC
 PRESERVATION LAW.
   (III)  THE REHABILITATION CREDIT MAY BE TRANSFERRED AS PROVIDED FOR IN
 ARTICLE FOURTEEN-A OF THE PARKS, RECREATION  AND  HISTORIC  PRESERVATION
 LAW.
   (H)  THE COMMISSIONER, IN CONSULTATION WITH THE COMMISSIONER OF PARKS,
 RECREATION AND HISTORIC  PRESERVATION,  SHALL  REPORT  ANNUALLY,  ON  OR
 BEFORE  THE  FIRST  DAY  OF NOVEMBER, ON THE AGGREGATE AMOUNT OF CREDITS
 CLAIMED PURSUANT TO THIS SUBDIVISION ON RETURNS FILED DURING THE PRECED-
 ING CALENDAR YEAR.   SUCH REPORT SHALL  BE  PROVIDED  TO  THE  GOVERNOR,
 TEMPORARY  PRESIDENT  OF  THE SENATE, SPEAKER OF THE ASSEMBLY, CHAIRS OF
 THE SENATE COMMITTEES ON FINANCE AND ON HOUSING, CONSTRUCTION AND COMMU-
 A. 2711                             7
 
 NITY DEVELOPMENT, AND CHAIRS OF THE  ASSEMBLY  COMMITTEES  ON  WAYS  AND
 MEANS AND ON HOUSING AND SHALL BE MADE PUBLICLY AVAILABLE ON THE DEPART-
 MENT'S WEBSITE.
   §  5. Paragraph 5 of subsection (oo) of section 606 of the tax law, as
 amended by section 2 of part U of chapter 59 of the  laws  of  2019,  is
 amended and two new paragraphs 7 and 8 are added to read as follows:
   (5) Except in the case of a qualified rehabilitation project undertak-
 en  within a state park, state historic site, or other land owned by the
 state, that is under the jurisdiction of the office of parks, recreation
 and historic preservation, OR IN THE  CASE  OF  A  QUALIFIED  LOW-INCOME
 HOUSING  PROJECT  UNDER  ARTICLE  TWO-A  OF  THE PUBLIC HOUSING LAW THAT
 OTHERWISE  QUALIFIES  FOR  A  REHABILITATION  CREDIT  PURSUANT  TO  THIS
 SUBSECTION,   to  be  eligible  for  the  credit  allowable  under  this
 subsection the rehabilitation project shall  be  in  whole  or  in  part
 located  within  a census tract which is identified as being at or below
 one hundred percent of the state median family income as  calculated  as
 of  April  first  of  each year using the most recent five year estimate
 from the American community survey published by the United States Census
 bureau. If there is a change in the most recent five  year  estimate,  a
 census  tract  that  qualified for eligibility under this program before
 information about the change was released will  remain  eligible  for  a
 credit under this subsection for an additional two calendar years.
   (7)  (A)  THE CREDIT ESTABLISHED BY THIS SUBSECTION MAY BE TRANSFERRED
 AS SET FORTH IN ARTICLE FOURTEEN-A OF THE PARKS, RECREATION AND HISTORIC
 PRESERVATION LAW WITHOUT REGARD TO AND IN A  SEPARATE  MANNER  FROM  ANY
 FEDERAL  REHABILITATION CREDIT THAT MAY BE TRANSFERRED WITH RESPECT TO A
 CERTIFIED HISTORIC STRUCTURE UNDER SECTION FORTY-SEVEN OF  THE  INTERNAL
 REVENUE CODE.
   (B)  WITH  RESPECT  TO  A  ELIGIBLE PROJECT THAT IS SUBJECT TO A LEASE
 ARRANGEMENT WHEREBY A LANDLORD TAXPAYER AND TENANT TAXPAYER EACH OWN  AN
 INTEREST  IN  THE  ELIGIBLE  PROJECT  OR  IN AN ENTITY WITH AN OWNERSHIP
 INTEREST IN THE ELIGIBLE PROJECT AND THE  LANDLORD  TAXPAYER  ELECTS  TO
 PASS  THE FEDERAL REHABILITATION CREDIT THROUGH TO SUCH TENANT TAXPAYER,
 THE LANDLORD TAXPAYER MAY OPT TO RETAIN THE REHABILITATION CREDIT OR MAY
 PASS DOWN THE REHABILITATION CREDIT TO THE TENANT TAXPAYER WHICH MAY, IN
 TURN, TRANSFER SUCH REHABILITATION CREDIT TO AN ELIGIBLE  TRANSFEREE  AS
 SET  FORTH  IN  ARTICLE FOURTEEN-A OF THE PARKS, RECREATION AND HISTORIC
 PRESERVATION LAW.
   (C) THE REHABILITATION CREDIT MAY BE TRANSFERRED AS  PROVIDED  FOR  IN
 ARTICLE  FOURTEEN-A  OF  THE PARKS, RECREATION AND HISTORIC PRESERVATION
 LAW.
   (8) THE COMMISSIONER, IN CONSULTATION WITH THE COMMISSIONER OF  PARKS,
 RECREATION  AND  HISTORIC  PRESERVATION,  SHALL  REPORT  ANNUALLY, ON OR
 BEFORE THE FIRST DAY OF NOVEMBER, ON THE  AGGREGATE  AMOUNT  OF  CREDITS
 CLAIMED PURSUANT TO THIS SUBDIVISION ON RETURNS FILED DURING THE PRECED-
 ING  CALENDAR  YEAR.    SUCH  REPORT  SHALL BE PROVIDED TO THE GOVERNOR,
 TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF THE  ASSEMBLY,  CHAIRS  OF
 THE SENATE COMMITTEES ON FINANCE AND ON HOUSING, CONSTRUCTION AND COMMU-
 NITY  DEVELOPMENT,  AND  CHAIRS  OF  THE ASSEMBLY COMMITTEES ON WAYS AND
 MEANS AND ON HOUSING AND SHALL BE MADE PUBLICLY AVAILABLE ON THE DEPART-
 MENT'S WEBSITE.
   § 6. Paragraph 5 of subdivision (y) of section 1511 of the tax law, as
 amended by section 3 of part U of chapter 59 of the  laws  of  2019,  is
 amended and two new paragraphs 7 and 8 are added to read as follows:
   (5) Except in the case of a qualified rehabilitation project undertak-
 en  within a state park, state historic site, or other land owned by the
 A. 2711                             8
 
 state, that is under the jurisdiction of the office of parks, recreation
 and historic preservation, OR IN THE  CASE  OF  A  QUALIFIED  LOW-INCOME
 HOUSING  PROJECT  UNDER  ARTICLE  TWO-A  OF  THE PUBLIC HOUSING LAW THAT
 OTHERWISE  QUALIFIES FOR A REHABILITATION CREDIT PURSUANT TO THIS SUBDI-
 VISION, to be eligible for the credit allowable under this  subdivision,
 the rehabilitation project shall be in whole or in part located within a
 census  tract  which  is  identified  as  being  at or below one hundred
 percent of the state median family income  as  calculated  as  of  April
 first  of  each  year  using the most recent five year estimate from the
 American community survey published by the United States Census  bureau.
 If  there  is  a  change in the most recent five year estimate, a census
 tract that qualified for eligibility under this program before  informa-
 tion  about  the  change  was released will remain eligible for a credit
 under this subdivision for an additional two calendar years.
   (7) (A) THE CREDIT ESTABLISHED BY THIS SUBDIVISION MAY BE  TRANSFERRED
 AS SET FORTH IN ARTICLE FOURTEEN-A OF THE PARKS, RECREATION AND HISTORIC
 PRESERVATION  LAW  WITHOUT  REGARD  TO AND IN A SEPARATE MANNER FROM ANY
 FEDERAL REHABILITATION CREDIT THAT MAY BE TRANSFERRED WITH RESPECT TO  A
 CERTIFIED  HISTORIC  STRUCTURE UNDER SECTION FORTY-SEVEN OF THE INTERNAL
 REVENUE CODE.
   (B) WITH RESPECT TO A ELIGIBLE PROJECT THAT  IS  SUBJECT  TO  A  LEASE
 ARRANGEMENT  WHEREBY A LANDLORD TAXPAYER AND TENANT TAXPAYER EACH OWN AN
 INTEREST IN THE ELIGIBLE PROJECT OR  IN  AN  ENTITY  WITH  AN  OWNERSHIP
 INTEREST  IN  THE  ELIGIBLE  PROJECT AND THE LANDLORD TAXPAYER ELECTS TO
 PASS THE FEDERAL REHABILITATION CREDIT THROUGH TO SUCH TENANT  TAXPAYER,
 THE LANDLORD TAXPAYER MAY OPT TO RETAIN THE REHABILITATION CREDIT OR MAY
 PASS DOWN THE REHABILITATION CREDIT TO THE TENANT TAXPAYER WHICH MAY, IN
 TURN,  TRANSFER  SUCH REHABILITATION CREDIT TO AN ELIGIBLE TRANSFEREE AS
 SET FORTH IN ARTICLE FOURTEEN-A OF THE PARKS,  RECREATION  AND  HISTORIC
 PRESERVATION LAW.
   (C)  THE  REHABILITATION  CREDIT MAY BE TRANSFERRED AS PROVIDED FOR IN
 ARTICLE FOURTEEN-A OF THE PARKS, RECREATION  AND  HISTORIC  PRESERVATION
 LAW.
   (8)  THE COMMISSIONER, IN CONSULTATION WITH THE COMMISSIONER OF PARKS,
 RECREATION AND HISTORIC  PRESERVATION,  SHALL  REPORT  ANNUALLY,  ON  OR
 BEFORE  THE  FIRST  DAY  OF NOVEMBER, ON THE AGGREGATE AMOUNT OF CREDITS
 CLAIMED PURSUANT TO THIS SUBDIVISION ON RETURNS FILED DURING THE PRECED-
 ING CALENDAR YEAR.   SUCH REPORT SHALL  BE  PROVIDED  TO  THE  GOVERNOR,
 TEMPORARY  PRESIDENT  OF  THE SENATE, SPEAKER OF THE ASSEMBLY, CHAIRS OF
 THE SENATE COMMITTEES ON FINANCE AND ON HOUSING, CONSTRUCTION AND COMMU-
 NITY DEVELOPMENT, AND CHAIRS OF THE  ASSEMBLY  COMMITTEES  ON  WAYS  AND
 MEANS AND ON HOUSING AND SHALL BE MADE PUBLICLY AVAILABLE ON THE DEPART-
 MENT'S WEBSITE.
   § 7. This act shall take effect immediately and shall apply to taxable
 years commencing on and after January 1, 2026.